Applied Industrial Technologies, Inc. · NYSE:AIT
Applied Industrial Technologies — Merger or Acquisition (January 2018)
13 slides from Applied Industrial Technologies's merger presentation, Jan 9, 2018
Slide 1: FCX Performance Acquisition Overview
January 9, 2018 Investor Presentation FCX Performance Acquisition Overview Exhibit 99.2
Slide 2: Safe Harbor
Safe Harbor This presentation contains statements that are forward-looking concerning the agreement entered into by Applied to acquire FCX, including expectations regarding the financial and operational impact of the acquisition on Applied. The term “forward-looking” is defined by the Securities and
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes certain forward-looking financial measures that are not presented in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP financial measures are numerical measures of financial performance that exclude or include amo
Slide 4: Compelling Strategic Acquisition Brings Together Leading Fluid Power & Flow Control Businesses
Leading Engineered Fluid Power & Flow Control Systems Provider Compelling Strategic Acquisition Brings Together Leading Fluid Power & Specialty Flow Control Businesses in the North American Markets Establishes Comprehensive Technical MRO & OEM Solutions Offering, Including High-Touch Lifecycle Servi
Slide 5: FCX Performance Overview
12-Month Forward Projected Approximate Sales: $550M 12-Month Forward Projected Approximate EBITDA: $68M Headquarters: Columbus, OH 68 Service Center Locations; More Than 1,000 Employees Industry Leading Position in Highly Fragmented Market Unique Technical Capabilities Providing Products & Solutions
Slide 6: FCX Performance Overview: Technical Sales Force and Scale
FCX Performance Overview Best in Class Technical Sales Force Technical & Service Capabilities Solidify Customer Relationships Broad Engineered Solution-Focused Product Offering Unmatched Size & Scale Comprehensive Offering Enables “One-Stop Shopping” Value Prop Technical Sales Force with Deep Applic
Slide 7: Market Leading, Value-Added Specialty Flow Control Distribution Platform
Market Leading, Value-Added Specialty Flow Control Distribution Platform & the Industry’s Leading Consolidator Expansion into Complementary Flow Control Valve & Instrumentation Categories Large Installed Base of MRO & OEM Customers Across Diverse End Markets Highly Technical Sales Force with Deep Cu
Slide 8: Transaction Overview
Timely Path Back to Attractive Leverage While Still Paying Dividends Transaction Overview Anticipated Timeline to Close Sources of Funds EPS Projections Transaction Consideration Approval Process Approximate $768M Purchase Price ~11.3x Projected 12-Month EBITDA New Credit Facility: $780M Term Loan A
Slide 9: Acquisition Financial Impact
Acquisition Financial Impact Strong Foundation for Driving Incremental Shareholder Value Ability to Rapidly De-lever While Maintaining Dividend Trajectory Proven Operating Models & Leverage of Best Practices & Tools $30M+ Five-Year Synergy Opportunity Continued Execution of Growth Initiatives + Syne
Slide 10: Extensive Product & Service Offering for Diverse Industry Requirements
Extensive Product & Service Offering for Diverse Industry Requirements > 80% of sales in critical Bearing, PT, and Fluid Power & Control segments; > 50% in response to critical “break / fix” requirements... “We Keep Industry Moving!” 600+ Local facilities & 3,600+ Customer-facing associates providin
Slide 11: Broad Product Portfolio
General Maintenance; Hose Products 18% Fluid Power 21% Power Transmission 24% Bearings, Linear & Seals 20% Broad Product Portfolio 6.5 Million+ SKUs Critical Products, Services & Solutions… Reducing Downtime, Increasing Uptime Specialty Flow Control 17%
Slide 12: Leading provider of Specialty Process Flow Control products & services
Leading provider of Specialty Process Flow Control products & services Value-added solutions improve cost productivity, reduce downtime & improve compliance within regulatory environment MRO & OEM customers across diverse industrial & process end markets Channels to Market Service Centers Fluid Powe
Slide 13: Business Overview
Business Overview Industry leader with proven track record Well-positioned in large, fragmented market Strong cash generation providing business flexibility & ability to quickly de-lever Strategic plan for accelerated growth Driving Shareholder Value Creation via Business Execution | Strategic Inves
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